The Nigerian stock market witnessed a remarkable surge in trading activity in June 2025, with total equity transactions reaching N778.65 billion, representing a 120 per cent year-on-year increase compared to N354.55 billion recorded in June 2024. This significant growth underscores renewed investor confidence, driven largely by increased participation from domestic institutional investors.
According to data released by the Nigerian Exchange Limited (NGX), domestic investors accounted for approximately 64 per cent of the total trading value for the month, reinforcing their dominance in the local capital market.
The NGX report revealed that total domestic transactions grew by 9.93 per cent, rising from N581.59 billion in May 2025 to N639.34 billion in June 2025. Institutional investors outperformed retail traders, with institutional transactions increasing by 49.39 per cent, moving from N244.13 billion in May to N364.71 billion in June. In contrast, retail transactions dipped by 18.62 per cent, falling from N337.46 billion to N274.63 billion.
Market analysts attributed the increased institutional participation to strong corporate earnings reports, improving macroeconomic indicators, and strategic positioning by fund managers seeking long-term value.
Speaking on the development, a Lagos-based stockbroker, Tunde Oyewole, noted:
“Institutional investors are seeing clearer economic direction, particularly with fiscal reforms and steady corporate profit declarations. The market is responding positively to these fundamentals, and we expect this trend to continue in the second half of 2025.”
The NGX data also highlighted improved foreign participation. Foreign transactions surged by 17.16 per cent, rising from N118.91 billion ($74.97m) in May to N139.31 billion ($91.07m) in June. Analysts attribute this to growing foreign portfolio investment (FPI) confidence, aided by relative foreign exchange stability and improving economic outlook.
Foreign inflows exceeded outflows during the period, suggesting a net positive foreign investment sentiment. This is consistent with the broader year-to-date performance, where total equity transactions have reached N4.19 trillion in the first half of 2025, up from N2.60 trillion in the same period last year.
The Nigerian equity market’s long-term trajectory remains bullish. Over the past 18 years, domestic transactions have increased by 33.15 per cent, rising from N3.56 trillion in 2007 to N4.74 trillion in 2024, while foreign transactions grew by 38.31 per cent in the same period.
Analysts predict that the NGX will continue to benefit from local institutional investors’ sustained interest as well as the gradual return of foreign portfolio investors. However, they warned that policy consistency, forex stability, and inflation control remain critical to sustaining market momentum.
With domestic investors accounting for 73 per cent of total transactions year-to-date, analysts forecast further growth in the second half of 2025, especially if the Federal Government sustains ongoing economic reforms. The market could also experience sectoral rotations, with financial services, manufacturing, and oil & gas stocks expected to dominate trading volumes.